China battery scrap prices remain stable during Chinese New Year holiday, future outlook depends on supply.

The lithium-ion battery recycling market in China saw limited activities during the Chinese New Year holiday, with prices holding steady due to low supply and demand. Processing plants mostly halted operations during the festive period, while hydrometallurgical plants continued with limited activity. Production is expected to resume gradually after February 24th, with some facilities still operating to fulfill processing orders. Trading in the market slowed down in the week leading up to the holiday as manufacturers completed their stockpiling for post-holiday production or to maintain operations during the festival. Market transactions have yet to pick up post-holiday, with participants taking a cautious approach to price trends, but it is expected that activities will gradually resume in the following week.

During the holiday, prices for lithium battery scrap remained stable due to a lack of influencing factors. Prices were quoted with discount coefficients ranging between 75% to 80.5% for ternary cathode scrap metal salts and between 75% to 76.5% for battery powder. For lithium iron phosphate (LFP) cathode scrap, prices ranged from Yuan 5,800-6,000 per lithium point, and LFP battery powder was quoted between Yuan 5,600-5,800 per lithium point. While LFP scrap prices saw a slight increase due to bullish sentiment from holders, significant price fluctuations are unlikely due to limited demand from downstream buyers.

Looking ahead, some traders continue to support prices in the market, impacting the direction of lithium battery scrap prices. However, the normal operations of hydrometallurgical plants and their completion of stockpiling needs through March have resulted in subdued demand. As downstream manufacturers gradually resume production post-holiday, there is an expectation of a slight increase in battery scrap prices. The overall price trend will depend significantly on the availability of scrap materials in the market.